This chapter introduces the concept of ‘reform imbalances’ in order to explain the sectoral asymmetries and political distortions in the neoliberal transition of the South Korean economy. The developmental state model, in spite of its astounding industrial developmental performance, had spawned various structural pitfalls, including national and corporate financial vulnerabilities in particular. In theory, neoliberalism could have helped remedy such problems, but the actual neoliberal measures closely reflected, not rectified, the existing power relations and interest structures and thus only accentuated financial liberalization and corporate deregulation. Thereby ensued the 1997 financial crisis, which in turn was tackled by intensifying the same policies as well as by implementing radical measures for labor market flexibility. Two decades into the new millennium, the state remains pretentiously developmental and anti-proletarian; the chaebol ostensibly maintain their monopolistic economic domination and familial control structure; global financial capital, with their staggering shares in the most profitable firms and sectors of the South Korean economy, has turned complicit about such state-business collusion; and workers and poor people in increasing numbers have suddenly found themselves disenfranchised from the neoliberalized developmental political economy. This chapter examines South Korea's transition from a developmental state model to a neoliberal framework from the 1990s to the mid-2010s. Initially, South Korea’s economic growth was propelled by a state-led model under Park Chung-hee during the 1960s and 1970s. Reforms began in the 1980s to address the macroeconomic imbalances and financial vulnerabilities engendered by this model, but significant changes occurred in the 1990s due to both internal pressures and external influences. In particular, the 1997 Asian Financial Crisis catalyzed neoliberal reforms. However, a hybrid model—termed “developmental neoliberalism”—emerged, as the economic malaise caused by neoliberal reforms helped resuscitate the developmentalist ideology of the past. This model maintained some state control to support key industries while embracing globalization and financial liberalization. The chapter highlights the complexities and consequences of this transition, including the slowdown of growth and the rise in inequality.